RTRS:METALS-Copper lifted by growth hopes, U.S. data in focus
* Copper on track to post biggest weekly gain this year
* China markets reopen from week-long holiday
* Coming up: U.S. nonfarm payrolls for Jan at 1330 GMT (Updates prices, adds comment, detail; previous SYDNEY)
By Harpreet Bhal
LONDON, Feb 7 (Reuters) - Copper rose on Friday, on track to post its largest weekly rise for the year, boosted by encouraging labour market data from the United States and limited short-term availability of the metal in the physical market.
Three-month copper on the London Metal Exchange was at $7,141.75 a tonne at 1003 GMT, up from a close of $7,130 on Thursday. The metal used in power and construction has gained 1.1 percent so far this week.
The number of Americans filing new claims for unemployment benefits fell more than expected last week, in a boost to the labour market outlook and the broader economy.
Investors' focus will now shift to the key non farm payrolls data scheduled later in the session, to gauge the strength of recovery in the world's largest economy.
U.S. hiring likely snapped back from a three-year low in January and kept the unemployment rate steady at 6.7 percent, which could ease investors' fears the economy is slowing sharply. Nonfarm payrolls are expected to have increased by 185,000 in January.
"The non farm payroll number... may indicate what the Fed may or may not do and this has got the potential to upset markets," said Anita Paluch, strategist at Varengold Bank.
"Strong numbers will evoke talk about (U.S. monetary) tightening and definitely pave the way for further tapering; conversely, weak data will raise concerns that the U.S. economy is failing to gain the right momentum."
Data showing dwindling supplies of copper stocks, which raised concerns about immediate availability, also lent support to prices. The figures showed stocks in LME-registered warehouses are at their lowest level in more than a year at 308,025 tonnes. MCUSTX-TOTAL
LME cash prices climbed on Thursday to trade $48.50 higher than the benchmark three-month contract, up from around $15 at the start of January. CMCU0-3
Markets in China, the world's largest copper consumer, reopened on Friday following the week-long the Lunar New Year holiday. Recent soft factory data from the country has prompted caution about the outlook for economic growth and copper demand.
China's services sector grew at its slowest pace in almost 2-1/2 years in January after firms secured a smaller volume of new business, a private survey showed, adding to growing signs of slackening in the Chinese economy.
"Copper prices are likely to be choppy and range bound ... it's still too early to buy on weakness," said Hong-Kong based analyst Helen Lau, at UOB Kay Hian Ltd.
At a time when major miners have turned gun-shy on acquisitions, two big players - Canada's Teck Resources and Poland's KGHM Polska Mied - made it clear last week that they are keen to partner with junior firms on high-quality, early-stage projects.
